Automobile Company Settles SEC Charges for Misleading Disclosures

Fiat Chrysler Automobiles N.V. agreed to settle SEC charges on misleading disclosures from an internal audit concerning emissions control systems.

According to the SEC's Order, the public company conducted an internal audit that confirmed the company's vehicles were compliant with U.S. emissions regulations. The SEC found that these disclosures were misleading because the internal audit was limited in focus and did not provide "a comprehensive review of [the Company's] compliance" with environmental regulations concerning emissions.

The SEC found that the Company violated the reporting provisions of the federal securities laws, including Section 13(a) of the Exchange Act and SEA Rules 12b-20 ("Additional Information") and 13a-16 ("Reports of Foreign Private Issuers on Form 6-K"). To settle the charges, the Company agreed to (i) cease and desist from future violations of the relevant securities regulations and (ii) pay a $9.5 million civil penalty.

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